APMJ LTD

Executive Summary

APMJ LTD displays a worsening financial position with increasing net liabilities and negative working capital, indicating poor creditworthiness. The company lacks sufficient liquidity and capital buffers to meet obligations, making credit extension high risk. Close monitoring of financial recoveries and governance compliance is essential before reconsidering credit facilities.

APMJ LTD - Analysis Report

Company Number: 12994824

Analysis Date: 2025-07-29 19:23 UTC

1. Credit Opinion: DECLINE
   APMJ LTD shows persistent and increasing net liabilities with a negative net asset position worsening from -£1,331 in 2022 to -£4,327 in 2023. The company’s current liabilities significantly exceed current assets, resulting in negative working capital (-£3,927 in 2023). The lack of positive equity and ongoing losses indicate an inability to service debt or absorb financial shocks. The company operates as a micro entity with minimal turnover and no apparent profitability or cash reserves. Given these weaknesses and no signs of financial recovery, extending credit poses a high risk.

2. Financial Strength:
   The balance sheet reflects poor financial health. Net liabilities have grown by over 3x in one year, highlighting deteriorating financial position and insufficient capital. Current liabilities remain stable around £5,440 but current assets have sharply declined to £1,514, signaling liquidity constraints. Shareholder funds are negative and show no improvement, implying accumulated losses and lack of retained earnings. The company has minimal fixed assets and no capital buffer to support operations or credit requirements.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by a wide margin, resulting in negative working capital and limited liquidity. The company’s ability to meet short-term obligations from cash or near-cash assets is questionable. No cash flow statements are provided, but the balance sheet data suggests cash outflows exceed inflows or insufficient cash generation. The absence of any audit and the micro-entity filing status further reduce transparency on cash flow health.

4. Monitoring Points:

• Monitor future filings for improvements in net assets and current asset levels to assess liquidity recovery.
• Watch for any additional capital injections or changes in shareholder funding that may improve balance sheet strength.
• Track timely filing of confirmation statements and accounts to mitigate governance risks (noting a confirmation statement is currently overdue).
• Observe any changes in director appointments and related party transactions given the controlling shareholder’s strong influence.